Type:
Bullish Bounce
Key Levels:
Resistance: 0.6325
Pivot: 0.62025
Support: 0.61394
Preferred Case:
On the H4, with price recently breaking the descending trend channel, short term ascending support and moving above the ichimoku cloud, we have a bullish bias that price will rise from the pivot at 0.62025 at the overlap support. If price breaks the intermediary resistance at 0.62702 at the swing high in line with the 61.8% fibonacci retracement and 100% fiboancci projection, we will have upside confirmation that price will rise to the 1st resistance at 0.6325 at the swing high in line with the 78.6% fibonacci retracement.
Alternative Scenario:
Alternatively, price may break the support structure at the pivot and drop to the 1st support at 0.61394 at the pullback support.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.